How to Lodge Your Australian Tax Return 2025–26 — Nepali Guide

The Australian financial year ends on 30 June 2026 — just over a month away. Whether you're on a student visa, a skilled worker visa, permanent residency, or are an Australian citizen, you have a tax return to lodge. This guide covers everything the Nepali community needs to know: deadlines, what to do before June 30, how to lodge, which deductions to claim, and how your visa status affects your tax.

Key dates

• →30 June 2026: End of the 2025–26 financial year. Last day to prepay deductible expenses, make extra super contributions, and claim property expenses for this year.
• →Mid-July 2026: ATO marks most income statements as 'Tax ready' in myGov. Don't lodge before your income statement is ready — the ATO prefills most of your data.
• →31 October 2026: Deadline to lodge your tax return yourself via myTax in myGov.
• →15 May 2027: Deadline if you use a registered tax agent — provided you engage them before 31 October 2026.

Step 1: Check your tax residency status

Your tax rate depends on whether you are an Australian resident for tax purposes — this is different from your visa status or permanent residency. Most Nepalis who have been in Australia for more than 183 days in the financial year are treated as Australian residents for tax and get access to the tax-free threshold ($18,200), standard tax rates, and Medicare. The key question is: do you have an intention to reside in Australia? If you have been here consistently and work here, the ATO will generally treat you as a resident.

• →Australian citizen or permanent resident: Australian tax resident in almost all cases. Standard rates, tax-free threshold applies.
• →Subclass 482 (TSS), 485 (Temporary Graduate), 494: Almost always Australian tax residents. Standard rates and tax-free threshold apply.
• →Subclass 500 (Student visa): Usually an Australian tax resident if you have been here more than 183 days and intend to stay to complete your studies. Standard rates apply.
• →Working Holiday (417, 462): Special rules — flat 15% tax on all income from $0, no tax-free threshold, no standard rate progression. Different rules for DASP (super withdrawal).
• →Recently arrived (less than 183 days this FY): You may be a non-resident for tax for part of the year. A tax agent can help you determine this.

Step 2: Do these before 30 June

June 30 is the cut-off for claiming expenses in this financial year. A few things worth doing in the next month:

• →Buy work-related items you need before June 30 — tools, uniforms, equipment, training courses. These become deductible in this year's return, not next year's.
• →If you have an investment property, pay any outstanding interest, insurance, or repairs before June 30 to bring the deduction into this financial year.
• →Make a personal super contribution if you want to claim it as a deduction — you must have submitted a 'Notice of Intent to Claim' form to your super fund before lodging your return.
• →Pay your tax agent's invoice — last year's tax agent fee is deductible in this year's return.
• →Make a donation to a registered DGR charity — charitable donations are fully deductible if the charity is DGR-registered.

Step 3: Gather your documents

• →Income statement from myGov (wait for 'Tax ready' status in mid-July — do not lodge before this).
• →Bank interest statements — savings and offset accounts.
• →Rental property records: income received, interest paid, depreciation schedule, repairs, property management fees, insurance.
• →Private health insurance annual tax statement (if you have hospital cover).
• →Receipts for all work-related deductions you plan to claim.
• →HECS/HELP balance from ATO online (your employer should already be withholding repayments if you earn above the threshold — just verify it is correct).
• →Spouse's income details if applicable (relevant for Medicare Levy Surcharge and some offsets).

Deductions most Nepalis miss

These are the deductions most commonly missed by Nepali workers in Australia. You must have actually spent the money, it must be directly related to earning your income, and you must have records (receipts, bank statements, or a log).

• →Work from home expenses: 70 cents per hour (ATO fixed rate) for every hour you worked from home. Keep a log in a calendar or diary — this adds up significantly over a full year.
• →Phone and internet: The work-use portion of your mobile and home internet bills. Keep one month's bill and calculate the work percentage, then apply to the full year.
• →Self-education: Courses, textbooks, or training directly related to your current job (not a new career). TAFE, university, and professional development courses all count.
• →Professional memberships and subscriptions: Industry body memberships, professional journals, or tools used for work (e.g., software subscriptions).
• →Work uniforms and protective clothing: Only if the clothing is specific to your job and not suitable for everyday wear. Logo-branded uniforms count; plain black trousers do not.
• →Car travel for work: Between two workplaces, or from your workplace to a client site — not home to work. Keep a logbook or use the ATO's 5,000 km cents-per-kilometre method.
• →Income protection insurance premiums: If you pay for income protection insurance (not through super), the premiums are fully deductible.
• →Tax agent fees: If you paid a tax agent last year, that fee is deductible this year.

Medicare Levy — and who can be exempt

Australian tax residents pay a Medicare Levy of 2% of their taxable income. For someone earning $80,000, that's $1,600 per year. However, if you hold a visa that does not give you access to Medicare — most student visas and some temporary visas — you can apply for a Medicare Levy Exemption. You need a Medicare Entitlement Statement from Services Australia to claim this exemption on your tax return. Without it, the ATO will charge you the levy regardless of your visa status.

If you earn above $93,000 and do not have private hospital cover, you will also pay the Medicare Levy Surcharge (1% to 1.5% of income). A basic hospital cover policy costs around $120–$180 per month and removes this surcharge entirely — worth comparing the numbers for your income level.

HECS/HELP — how repayments work

If you studied at an Australian university on a HECS-HELP or FEE-HELP loan, your repayments are calculated as part of your tax return. You do not make voluntary payments monthly — instead, your employer withholds extra tax if you earn above the repayment threshold (approximately $54,435 for 2025-26), and the ATO applies this to your debt automatically when you lodge. Check your HECS balance in ATO online services through myGov to see how much you owe and how your withheld repayments track.

How to lodge — step by step

• →Step 1: Log into myGov (my.gov.au) and link your ATO account if you have not already done so.
• →Step 2: Wait for your income statement to show 'Tax ready' — this happens in mid-July 2026 for most employers.
• →Step 3: Click 'Prepare return' in the ATO section of myGov. The ATO prefills most of your data — income, bank interest, HECS balance, private health details.
• →Step 4: Review the prefilled data and add any deductions. The ATO will prompt you through each section.
• →Step 5: Check the summary — it will show your estimated refund or amount owing.
• →Step 6: Submit. Most refunds arrive within 2 weeks via your nominated bank account.

What's coming in future years — the budget changes

The 2026 Federal Budget announced a $250 Working Australians Tax Offset and a $1,000 instant deduction for work expenses — but these apply from the 2027-28 financial year (the return you lodge in 2028), not this year's return. For this year's 2025-26 return, the standard deduction rules apply and you still need receipts for work-related claims above $300.